Carpentaria shares up 11pc on maiden resource

Shares in Brisbane-based explorer
Carpentaria Exploration
rocketed 11 per cent on Friday after the company revealed a maiden resource of 1.4 billion tonnes at the Hawsons Iron Project in Broken Hill, NSW.

The resource contains iron concentrate of 220 million tonnes magnetite at a premium grade of 69.9 per cent iron and 2.5 per cent silica.

The company plans to complete pre-feasibility studies in early 2011 targeting an initial open pit with a mine life of more than 15 years.

Production is expected to commence at 6 million tonnes per annum, ramping up to 20 million tonnes per annum.

Carpentaria’s executive chairman Nick Sheard said the company has already received interest from a number of potential Asian buyers for off-take of Carpentaria’s share of future output.

“High-quality magnetite, such as that identified at Hawsons, with potential for production of direct reduction pellets can currently command prices of up to $US190 per tonne," Mr Sheard said in a statement to the Australian Securities Exchange on Friday.

The Hawsons Iron Project is the largest magnetite iron ore resource identified in eastern Australia, 60 kilometres south of Broken Hill.

Carpentaria is likely retain a 20 per cent free carried interest through to annual production of 20 million tonnes of iron ore concentrate, according to Mr Sheard.